Taking the acquisition of Pirelli i

Taking the acquisition of Pirelli in 2015 as an example, this paper studies the financial results of the acquisition year and before and after the year and compares financial indicators to measure financing risk, which is shown in Table 1. It is not difficult to find that Sinochem had sufficient working capital in the two years before the implementation of the merger and its comprehensive ability to repay debt in the short and long term remained stable. However, after Sinochem used debt financing to pay up to 46.674 billion yuan in 2015, short-term and long-term solvency and liquidity reached a turning point, breaking the sound and stable trend of various financial indicators before the merger. Financial indicators show a downward trend. After financing with external debt funds, Sinochem has to bear the pressure of debt service, which has led to a decline in debt repayment capacity and a surge in financing risks.